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INFLUENCE OF KNOWLEDGE MANAGEMENT PRACTICES ON SERVICE INNOVATION

INFLUENCE OF KNOWLEDGE MANAGEMENT PRACTICES ON SERVICE INNOVATION: A CASE OF HUDUMA CENTRE ELDORET, KENYA

Calvins Ouko Ojwang

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A Research Proposal Submitted to the Department of Information and Knowledge
Management in the School for Human Resource Development in Partial Fulfillment of the Requirement for the Award of the Degree of Masters in Information and Knowledge Management of Jomo Kenyatta University of Agriculture and Technology.

JULY, 2018
DECLARATION

This proposal/thesis is my original work and has not been presented for a degree in any other University

…………………. …………………
Signature Date

This proposal/thesis has been submitted for examination with my approval as University Supervisor

……………… ……………….
Signature Date

Abstract
The effective implementation of E-government initiative in public sector is one of the best ideas whereby any serious democratic government can utilize to provide and render better quality services to its people. Huduma Kenya Flagship Project was also born as a result of that. It provides both physical and online interaction platforms whereby, the citizens themselves can visit the various designated centers or log into their online e-citizen user accounts to get services on their own. It has improved the lives of the citizens, especially by reducing the level of bureaucracy hence less corruption; improve efficiency, cut cost, and many other good things. However, despite of the above advantages, the initiative being at its young age, it faces challenges the major concern is that little has been done to address those challenges especially as far as better quality service delivery is concern. Every organization either public or private sector will always recruit and employ qualified workforce to enable it achieve its goal just as Huduma. However, if knowledgeable brains are not well managed and utilized through best knowledge management practices, then any effort towards achieving those goals is just in vain. Various Knowledge Management Practices by many scholars and authors have been closely associated with both product and service innovation. Innovation can be achieved through co-ordination of various thoughts and ideas. Though, much research has been done on product innovation as compared to service innovation. Therefore, this research will be aiming at determining the influence of the three hypothesized independent variables as knowledge management practices on dependent variable which is service innovation via a case study of Huduma Centre, Eldoret, Kenya. The study will adopt descriptive research design since it explains a state of affairs as they are at present without having any control over the variable and also involves a case study and survey methods. The target will be 857 as the total number of employees of Huduma Kenya of which the population will be organized into 4 key and 20 sections .Each section or division will be taken as a stratum and from each stratum the desired sample will be selected using stratified non-random sampling and a probability sampling technique for employees in all departments. Approximately 85 employees which represent 10% of the total population 857 eligible employees will be used as a sample size. Data collected from the field will be organized after being keyed into the computer Statistical Package for the Social Sciences (SPSS), and then cleaned to attain common tasks. Thereafter, descriptive statistics will be generated to aid in understanding the data in terms of its influence, patterns and trends. Using standard deviation and arithmetic, the characteristics will easily be described and explained. Finally, the research findings will be dispensed using various forms such as frequency tables, bar graphs, percentages and other appropriate forms.
Table of Contents
CHAPTER 1 PAGES
INTRODUCTION
1.1 Background of the Study ………………………………………………………….1
1.2 Statement of the Problem …………………………………………………………….3
1.3 Research Objectives ……………………………………………………………………………………3
1.4 Research Questions …..………………………………………………………………4
1.5 Justification of the Study ……………………………………………………………..4
1.6 Scope of the Study ……………………………………………………………….5
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction ………………………………………………………………………6
2.2 Theoretical Review/Conceptual Framework …………………………………….6
2.3 Critique of the study …………………………………………………………10
2.4 Summary ………………………………………………………………………..11
2.5 Research Gaps …………………………………………………………………11
CHAPTER 3
METHODOLOGY
3.1 Research Design ……………………………………………………………..12
3.2 Target Population ……………………………………………………………..12
3.3. Sampling Frame ……………………………………………………………12
3.4. Sample and Sampling Techniques ………………………………………………13
3.5. Research Instruments ………………………………………………………….13
3.6. Data Collection Procedure ……………………………………………………13
3.7 Data Processing and analysis ……………………………………………….13
Reference
Appendices
F) List of Figures
Figure 1: Conceptual framework. 4
G) Definition of terms
? Destine – predetermine.

? Paradigm Shift – an important change that happens when the usual
way of thinking about or doing something is
replaced by a new and different way.

? Tremendous -extraordinarily large in size.

? Beyond the shadow of doubt -With confidence; without any doubt.

? Flagship project -are research and development projects that are
strategically and scientifically defined and are of
substantial size with regard to their scientific and
financial volume, the number of project partners
and the running time.

? Mutually -having the same relation each toward the other.

? Natural environment -Ecological units which are natural systems without
much human interference.
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
It is obvious in the 21st century that knowledge management implementation in an organization and various governments is a complete shift paradigm as far a performance and competitiveness is concerned. This initiative when implemented in organizations with competitive cultures that eschewknowledge sharing and innovation, are destine to fail from thekick-start.
Globally, knowledge has successfully motivated the organizations and various governments to move towards the use of knowledge management according to (Rennung, Luminosu & Draghici, 2018) Knowledge has been considered as global economic transformation. In addition, it is also an important source of wealth and key for all organizations to stay competitive in the business environment (Von, Krogh, Nonaka & Aben, 2001). In addition, management of knowledge is a key strategic asset as it has been shown to influence value creation and as such is a key strategic asset (Alavi & Leidner, 2001).
Therefore, new and improved ways to think about e-government projects and their management should include new strategies to transfer knowledge and develop competencies that are aligned to current realities and contexts Rennung, Luminosu & Draghici, 2018)African countries and other developing countries are currently coming on board gradually especially at both government and organizational level, to embrace best knowledge management practices in order to improve their service quality especially in both physical and online platforms and additionally, to remain relevant in economy, market and finally be at par with their competitors.
In Africa continent and other developing countries around the world, according to (Mutula & Mostert, 2010) there is need to suffuse an e-government essence in poverty liberalization programme in order to achieve proper service delivery. Additionally, they point out that in South Africa, government ICT infrastructures were underutilized hence hindering better service delivery to its citizens.

As informed by (Schuppan, 2009), he emphasized that e-government beyond the shadow of doubt, had an ability to reduce administrative and development challenges. However, he continued by pointing out that, when the initiative is compared to other developed countries, then much effort must be in place especially as far as its implementation strategies are concerned specifically in Africa continent and other developing countries globally in order to attain proper service delivery to citizens.
Locally in East Africa too, best knowledge management practices implementation is key strategy when proper and quality service delivery on both physical and online platforms at both governments and private organizations. Basing from a case of a research conducted by (Kaaya, 2004)which was aiming at determining the status of various governments’ websites especially in three East Africa countries; Kenya, Uganda and Tanzania, she identified 98 government websites of which 33 were Kenyan, 28 Ugandan and 37 were for Tanzanian. The websites were constructed in between the year 2000 and 2003. The usability and interactivity analysis finding was that Tanzania citizens were leading, followed by Ugandans and finally Kenyans. However from point of view, as things stand now in these countries, this result currently may seriously have changed. Additionally, she pointed out that basic requirement for e-government implementation process must consider the following; necessary ICT infrastructures in place, user readiness and ability to access and retrieve an online information and finally the availability of human resource who are qualified and skilled enough to conduct and organize the online information properly.
From each country perspective, (Ocharo, 2008)noted that despite of tremendous amount of online information content on various e-government platforms, many of those contents do not meet the needs of considerable number various communities in Kenya. For instance, he noted that from various passed analysis, by then of all Kenyan government websites, the contents were written in English language despite that majority of local communities were from either local ethnic languages or Swahili living alone literacy level and digital divide issue. However from point of view, there are many talented employees within and outside Kenyan government such as private sectors whose knowledge remain residing inside their mind whereby, if a conducive environment would have been created which enables them to create more knowledge, acquire new knowledge through further studies, bench marking and finally share those knowledge within their various organizations, this enhances service innovation and as a result service quality value accelerates even more higher.
According to (Finnegan ; Willcocks, 2006) many studies have recognized the importance of Knowledge Management in supporting innovation in an organization. Therefore, proper knowledge management practices must be in place in order to tap and convert the ideas within the organization to useful knowledge. According to (Ostrom ; Bitner, 2010) service innovation research also has momentum; the concept remains relatively unexplored compared with product innovation and needs further conceptual and empirical analysis and research. Therefore, establishing the connection between knowledge management practices and its influence on service innovation is a serious matter of subject to be researched on.

1.2 Statement of the Problem
Huduma Kenya is a Kenya Vision 2030 flagship project captured under the mid-term plan for 2013-2017. Its main aim is to enhance the access and delivery of Government service to all its citizens in an online platform. Kenya citizens in various organizations co-exist of diverse tribes, cultures, where culture includes racial, religious, and it is manifested in customary behaviors, cultural assumptions and values, patterns of thinking, and communicative styles. Delivery, access, and retrieval of government services behavior on e-platforms may vary. More creativity as far as service delivery is concern must be in place in order to satisfy citizens’ needs. According to (Anand & Ravallion, 1993) services play a major role in both developed as well as developing economies of the world in terms of its GDP contribution, and employment. In addition, (Samat & Saad, 2006) demonstrates that effectiveness of service is also broadly accepted in context with its quality. Even though the government of Kenya has tried to digitalize most of its services on a central online platform, much is needed to be done especially as far as service delivery is concerned. Citizens still make long queues waiting to be served at various Huduma Centers. This is actually a waste of unnecessary time which could be used elsewhere to build the nation. For service to be of high-quality, innovation must be the centerpiece. From (Darroch, 2005) perspective, innovation is a necessary component of organizational performance. Similarly, knowledge management plays a major role in various organizations and economies and therefore service innovation cannot be effective in an industry without proper knowledge management practices. So far, much is little has been done to grasp and establish the connection between knowledge management practices and its influence on service innovation gap. The main aim of this research, therefore, is to probe ways in which knowledge management practices influence service innovation via a case study of Huduma Centre, Eldoret.
1.3 Research Objectives
The main objective of this research is to establish the influence of knowledge management practices on service innovation via a case of Huduma Centre, Eldoret.

Specific Objectives
The specific objectives of this research are;
i. To find out the influence of knowledge creation on service innovation in Huduma Centre, Eldoret.
ii. To determine the influence of knowledge acquisition on service innovation in Huduma Centre, Eldoret.
iii. To establish the influence of knowledge sharing on service innovation in Huduma Centre, Eldoret.

1.4 Research Questions
The research questions that this research is seeking to determine answers to are;
i. What is the influence of knowledge creation on service innovation in Huduma Centre, Eldoret?
ii. How does knowledge acquisition influence service innovation in Huduma Centre, Eldoret?
iii. How does knowledge sharing influence service innovation in Huduma Centre, Eldoret?

1.5 Justification of the Study
The main drive behind this research is to determine if really e-government service delivery methods are actually effective enough to the extent that any common citizen Kenya whether educated or not, can interact very easily and as quicker as possible with e-service systems from an online platform point of view or at the designated centers located in various regions in the country. This is because when you visit these centers seeking to be served, you will be expecting quicker service, but the reality is the opposite. Crowds of people are still seen at these centers waiting to be served leaving alone those who are disadvantaged because of improper or totally luck of education, and also due to digital divide issue and cannot access to the e-service systems. Therefore, it can be concluded that; the initiative of delivery of services by the government through an online platform is one of the best idea because of its obvious advantages, but service delivery methods which are put in place, are what faces much problems. This research is significant upon its conclusion because it will add value to the government, Huduma Center management and other service provider on decision-making process on how to improve service delivery quality and performance. Finally, this study when concluded will greatly be resourceful and further contribute knowledge to the world of academia as far as this debate is concerned

1.6 Scope of the Study
This study geographically will be conducted at Huduma Center, Eldoret; one among many other branches all over the country whereby, the target population of study will be based and focused mainly on the Center’s management, Center’s employees and the customers (citizens) who are the primarily affected ones either; positively or negatively by the quality of government service delivery from both platforms.
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
This chapter will be reviewing various empirical and theoretical literatures articles relevant to this study by showing clearly the linkage between literature review and the research questions. Specifically, it introduces knowledge management and then addresses and demonstrate clearly what other scholars says about this topic of study especially by indicating how various hypothesized independent variables (Knowledge Creation, Knowledge Acquisition and Knowledge Sharing) influence the dependent variable (Service Innovation). Additionally, it contains a diagram that demonstrates summary of the conceptual framework.Finallyit contains the critique of what various scholars in this study have said, summary of the entire chapter and where research gap exist.

2.2 Theoretical Review/Conceptual Framework
Knowledge Creation
Even though actual agreed common definition of Knowledge management remains a debate, but according to (Dalkir, 2011) Knowledge Management can be defined as the application of systematic approach in order to capture, structure, manage and disseminate knowledge within the organization with the aim of increasing operation, reuse of best practices and decrease cost rework from project to project. From an individual perspective, if Knowledge Management is defined capturing the aspect of intellectual capital as an asset, then it adds a meaning and making it better.

Knowledge Management practices, are the preconceived and step by step coordination of an organization, people, technology, processes and the organizational structure with intensive of value addition through reuse and innovation. The condition can be attained by creating sharing and application of knowledge and in addition, through feeding the valuable lessons learned and best practices and experiences into corporate memory in order to foster continued organizational learning. From process or technological viewpoint, according to the article posted by Carl Frappaolo at Rennung, Luminosu & Draghici, 2018), Knowledge management can be defined as gripping collective wisdom to increase responsiveness and innovation.

From (Dalkir, 2011) viewpoint, the stress on the importance of knowledge in nearly all aspects of daily and commercial life, that there exist two knowledge-related scenarios important for viability and success at any level which includes; Knowledge as asset which must be applied, natured, preserved and finally used to the greater level possible by both individuals and organizations. The other aspect is Knowledge-related progress which intends to create, built, compile, organize, transform, transfer, pool, apply, and safeguard knowledge that must be keenly and explicitly managed in all pretentious areas.

According to the book written by(Bathelt, Cohendet, Henn & Simon, 2017) provides an elaborate overview and critical evaluation of existing conceptualizations and discusses new developments in and challenges to innovation research. From their point of view, innovation, learning, knowledge creation, and creativity are closely related.
(Allred, 2001) expresses his concern that in any organization, the value interest of knowledge creation has been reduced to an overemphasis on information technology and other measurement tools. Knowledge workers are not incorporated into creativity debate and neither do they contribute to information sharing.
Traditional forms of compensation and organizational structures and leadership hierarchy do not motivate and encourage people enough in order to develop stronger relationship enough required to enhance proper knowledge creation on a continuing basis and therefore more research should be conducted to connect knowledge creation and innovation especially within the organization.

Knowledge Acquisition
According t o (Bapuji & Crossan, 2004) described external learning competence as the organizational effort to be a position to create and merge new knowledge created and integrated by interaction with the environment and other organization. For this to occur, an organization should be in a place of incorporation of its best practices through the transformation of knowledge with the newly emerging knowledge from technology acquisition and from socializing with the environment and other organizations (Ettlie and Pavlou, 2006).

According to (Alegre, Sengupta & Lapiedra, 2013) it is the inclusion of new knowledge that emerge as a result of learning from the external environment into the knowledge base of the organization and this becomes a value as far as innovation process is concerned.

From (Bapuji & Crossan, 2004) described external learning competence as a new knowledge created in an organization as a result of cumulative experience using its own resources. Therefore, an organization must be able to develop competence. (Wynarczyk, Piperopoulos & McAdam, 2013) adds that it is also incorporated in the organization’s databases and this contributes highly in the innovation process.

Several literature reviews offer theoretical support and empirical aid that there exists a positive connection between several knowledge management practices and innovation performance. For instance, (Corso, Martini, Paolucci ; Pellegrini, 2001) demonstrates that there is actually a positive connection between knowledge and learning systems on innovation process and results.

Finally according to Gloet ; Samson, 2012)adds that from various literature reviews, knowledge management is like a multidimensional construct and therefore many orientations forwards knowledge management exists but those literature were unscientific and discrepancy in nature which create a big gap for a research that connects KM Practices and service innovation performance.

Knowledge Sharing
According to (Goh ; Chua, 2008), Knowledge Sharing implies that “individuals mutually adjust their belief and actions with more or less intense interactions”. They added that matters to do with innovation now cannot be assumed anymore for the success of any economy player be it government or private sectors. They emphasize that many organization were at par with each other as far as service delivery performance is concerned but the only entity that would put other on a level above is when they embrace service innovation.

From their point of view, knowledge is actually a very important asset in the preservation of regarded traditions, learning new technologies, problem-solving, creation of core competencies and initiating new situations. Knowledge sharing, therefore, has a role to play which is; knowledge exchange and creation. From that concept alone, it can be concluded that knowledge sharing as one of the best knowledge management practice in an organization, plays a great role in service innovation.

Service Innovation
According to (Windrum ; Koch, 2008) book, Service innovation can be described as the introduction of a new service product or improvement in the quality of an existing service product which includes all innovations involving changes in the characteristics of service product and design of service. The new concept involves new or altered ways of delivery to clients or otherwise interacting with them for the purpose of supplying specific public service.

From the viewpoint of (Victorino, Verma ; Plaschka, 2005), clients in various service industries assailed with common product and service as a result, they desire and basically need innovation as alternatives. Currently, product firms that also noted the benefit corporation of service innovations as business strategies and therefore innovation research is very important. (Dan Reid, 1992) adds value by stressing the importance of why a manager should implement service innovation programs which are not only beneficial to customers but also again to their organization.

(Windrum ; Koch, 2008) noted that there were very few studies that take into account service innovation in both public and private sectors. This, as a result, makes government service delivery on online platform ineffective

In addition, (Chesbrough, 2004) stretch and emphasize the need of conducting research on service innovation since it is neglected as compared to product innovation in order to boot knowledge in service innovation and improve service delivery quality.

Finally,(Gassmann, Enkel ; Chesbrough, 2010) also noted that while more attention of research is based at a product and slightly process innovation, the big gap of innovating service in the largest sector in developed and developing countries is assumed. In addition, they also recommended that more research should focus on service innovation since it was still underdeveloped.

Conceptual Framework

2.3 Critique of the study
Most of scholars in this research indeed acknowledges in one way or the other, that knowledge management and especially the implementation of its best practices in both public and private sectors has greater influence on innovation be it in products or services and this majorly contributes to positive improvement as far as quality is concerned. What comes clear is the debate about the real definition of knowledge management whereby nearly all the authors and scholars cited in this research takes a common stand; that there is no general agreed definition of the above term. For example, (Dalkir,2011), (Rennung,2018),( Bathelt, 2017) and even (Allred, 2001) defines knowledge management in their own terms but however, in personal opinion it can be concluded that all those definitions are headed towards a common direction and hence sooner or later a common agreed difination may be attained.

Secondly, as far as the influence of the above three hypothesized independent variables on dependent variable is concerned, from point of view, it is indeed correct to say according to (Bathelt, 2017) that there co-exist close relationship among innovation, learning, knowledge creation and creativity at conceptualized level however individually, these ties can extend behind that level and even to practical aspect.

Finally, knowledge sharing is actually one of a very important knowledge management practice especially when adopted and implemented effectively in organization more so where improvement of service quality is desired. (Goh ; Chua, 2008) point out that this practice is not well exploited through its implementation in order to add value in organizational service delivery.

2.4 Summary
In summary, the implementation of various knowledge management practices especially in public and private sectors are the key pillars to successful service innovation in those sectors. However, being that the implementation of knowledge management practices at both sectors is still a new emerging concept that is aiming at transforming various services delivery operations, it has not been given much thought and weight as it deserve by many sectors be it public or private. Therefore, future researches should be conducted in order to connect those practices and their actual influence on service innovation processes in both public and private sectors.

2.5 Research Gaps
Basing on the opinion of many scholars in this research and from an individual point view, it is clear and can be concluded that indeed there is a close ties between knowledge management practices and service innovation. However, the only serious research gap is to establish the actual influence of these two related entities that is; what is the greater influence of knowledge management practices on service delivery?

CHAPTER 3
METHODOLOGY
3.1 Research Design
This study will adopt descriptive research design method. From (Kothari, 2004) point of view, it explains a state of affairs as they are at present without having any control over the variable. It is closely associated with observational whereby it can be used to review and record the actions and behaviors of a group of the test subject in their natural environment. It is also comprises of case studies in which it’s only involved with a small group of individuals but not involving interaction with the test subjects. Finally, employing this design it’s just a pin pointer of a quantitative approach design and it involves a survey of which interaction by the individual test subject is by collecting information through the use of survey and questionnaires.
3.2 Target Population
According to (Johnson ; Christensen, 2008) define a population as the entire group of persons or objects having similar observable features of interest that the researcher desires to investigate and upon whom the research findings are generalized. According to Huduma Kenya’s website, there are 857 employees in all the centers. The Huduma centre, Eldoret employees have the observable features of the population needed and useful to this study and they are involved in the activity of Knowledge Management practices on their day to day operations.

3.3 Sampling Frame
In this research, the population will be organized into 4 key departments (Center Manager, Human Resource, ICT and Customer Service team) and 20 sections (Institutions ;Ministries, Departments and Agencies) of which at least 20 in number must be available at each Centers. Each section or division will be taken as a stratum and from each stratum the desired sample will be selected using stratified non-random sampling and a probability sampling technique for employees in all departments. Approximately 85 employees which represents 10% of the total population 857 eligible employees will be used as a sample size .This is supported by (Johnson & Christensen, 2008) view that, a sample size of 10% of the target population is just plenty enough for data analysis and testing for significance of differences between estimates.

3.4 Sample and Sampling Techniques
The study will use stratified random and probability sampling technique which means that every member of the targeted population had a known, non-zero probability of selection. The population will be organized into 4 key departments and 20 sections (Institutions or service points) within the center but managing their own information and knowledge separately depending on each institution’s service genesis (Ministries, Departments and Agencies) and the methods of Knowledge Management practices in each of these institutions within the center, are replicated in other branches but with one central co-ordination point. (Cohen, Manion ; Morrison, 2000) describes stratified sampling as applicable if the population is not completely homogeneous.
3.5 Research Instruments
The study will use the following various tools to collect data; the questionnaire and organized personal interviews restricted only to the centre manager (both structured and unstructured).

3.6 Data Collection Procedure
The study will adopt various question formats (closed and open ended type of questions), personalizes the questionnaire and organized interviews. This is to achieve flexibility of data collection which is determined basically by the extent to which respondents can interact with the interviewer and the survey questionnaire.

3.7 Data Processing and analysis
Data collected from the field will be organized after being keyed into the computer Statistical Package for the Social Sciences (SPSS) (Starkings, 2012) and then cleaned to attain common tasks such as record matching, correct inaccuracies and ensure data quality is maintained. Thereafter, descriptive statistics will be generated to aid in understanding the data in terms of its influence, patterns and trends (Bickel and Lehmann, 1975). This is crucial in that, it will provide room to perceive and interpret the influence of independent variables on dependent variable. Additionally, descriptive research design will be adopted since it will help to describe characteristics of a population or phenomenon being studied. Using standard deviation and arithmetic, the characteristics will easily be described and explained. Finally, the research findings will be dispensed using various forms such as frequency tables, bar graphs, percentages and other appropriate forms.
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